CHICAGO—Multifamily is booming, and investors are finding opportunities in the northwest suburbs. Kiser Group, for example, a Chicago-based brokerage firm, recently completed seven Chicago-area apartment sales valued at nearly $32 million. The sales include the $17.45 purchase of Salem Ridge Apartments, a 249-unit, three-building apartment complex in suburban Hoffman Estates.
That sale follows Cleveland-based APM Management's purchase of Mount Prospect Greens, a 344-unit, 14-building apartment complex in nearby Mount Prospect from Windy City RE LLCfor $33 million. Kiser represented both parties in that transaction, which closed in late December 2014.
“Salem Ridge Apartments has been well-maintained, but there is still significant value-add opportunity for the buyer,” says Brian Mond, managing director of Kiser, who represented the buyer and the seller in the sale. “The property's location near shopping, employment and schools also makes it a stable investment.”
Located at 600-750 N. Salem Ridge Dr., the brick three-building complex built in 1974 includes 24 studios, 155 one-bedroom units, and 70 two-bedroom apartments. New appliances were recently placed in all the units. New elevator mechanicals were installed in 2011, new windows in 2012, and a roof overlay in 2007. New boilers were also put into each building within the past seven years.
Each apartment has a steel and concrete balcony and wall-to-wall carpeting. Other property features include two hydraulic elevators in each building, tenant storage and a laundry room. Rents range from $625 to $888. Tenants occupy 95% of the units.
The other six purchases, all completed in the fourth quarter, were in Chicago and include a 69-unit mid-rise in South Shore; a 77-unit, two-building portfolio in Hyde Park; a 34-unit walk-up in East Rogers Park; six-flat and a three-flat in Lakeview; and a 16-unit building in South Shore.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
